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BizReport : Ecommerce : May 28, 2010

Why do Facebook users "Like" brands and products?

Facebook users engage with companies and products on Facebook, joining their Fan Page and Groups. But why? The main reason behind this behavior is they want to show their friends which products and brands they support, according to marketing research firm Morpace.

by Helen Leggatt

Does Facebook have a role to play in retail? Yes, according to Morpace, who recently released their March Retail Omnibus Study "Facebook's Impact on Retailers" (.pdf).

Consumers say that, when logged into their Facebook account, they have talked about a range of products and services with their friends, including food/restaurant/grocery stores (38%), technology products (26% ), sporting/outdoor goods (15%) and children's toys (12%).

The number one reason for broadcasting a "Like" for a brand, quoted by 41% of Facebook users, was that they want friends to see which products or brands they support - a sort of indirect word-of-mouth recommendation.

And it works. Over two-thirds (68%) of users said they would be more likely to visit, or make a purchase from, a retailer if it had been recommended by a Facebook friend.

In addition to broadcasting their brand choices, users also engage with companies on Facebook so they can receive discounts and coupons (37%) and stay abreast of new products (35%).

Yet it appears that, despite being on a social network, only 28% join brand Fan Pages to meet other people.

Another interesting finding from the survey, which involved 1,000 respondents, is that Hispanics were found to have the greatest propensity to become fans across all the categories studied. Half of Hispanic respondents said Facebook was a good tool for researching new products, compared with 46% of Asians, 44% of African-Americans and 31% of Caucasians.

"As more consumers create accounts and spend more time on Facebook, the potential positive effects on the business environment increase. It is important for today's companies to understand and adapt to how social media can be used to effectively grow their business," concludes Morpace.

"Our data shows that Facebook can allow businesses to directly communicate with their target market, whether this is the exchange of product information, the offering of exclusive coupons and discounts, or the viral product buzz from Facebook friends."

Tags: brand awareness, e-commerce, online retail, social marketing, social network

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  • I cannot think of a better virtual marketing strategy. Facebook really continues to be a great asset to any business. Being able to promote a strong positive buzz about a product or service has an limitlessness audience once it starts on Facebook.



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